Post Utme Mountain Top University 2021 Accounting Question 10

Practice objective / multiple choice question 10 from the 2021 Post Utme Mountain Top University Accounting examination.

Post Utme Mountain Top University 2021 Accounting Objective / Multiple Choice
Question 10 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2021 • ACCOUNTING • objective

A company uses the weighted average method to value its inventory. The cost of the inventory is ₦100,000, and the selling price is ₦120,000. The company's accounting records show that the inventory is actually worth ₦110,000. What is the correct journal entry to record the correction?

Answer Options

Correct Answer A. Debit Inventory by ₦10,000 and credit Profit and Loss by ₦10,000
B. Debit Profit and Loss by ₦10,000 and credit Inventory by ₦10,000
C. Debit Inventory by ₦10,000 and credit Capital by ₦10,000
D. Debit Capital by ₦10,000 and credit Inventory by ₦10,000
Correct Answer
A
Correct Option:
Debit Inventory by ₦10,000 and credit Profit and Loss by ₦10,000

About This Question

This is Post Utme Mountain Top University 2021 Accounting Question 10. It is one of the objective questions from the 2021 Post Utme Mountain Top University Accounting examination.

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